{"id":355586,"date":"2021-10-20T22:06:00","date_gmt":"2021-10-20T19:06:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/hp-ceo-pc-shipments-will-be-hampered-by-supply-chain-issues-into-next-year\/"},"modified":"2021-10-20T22:06:00","modified_gmt":"2021-10-20T19:06:00","slug":"hp-ceo-pc-shipments-will-be-hampered-by-supply-chain-issues-into-next-year","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/hp-ceo-pc-shipments-will-be-hampered-by-supply-chain-issues-into-next-year\/","title":{"rendered":"#: HP CEO: PC shipments will be hampered by supply-chain issues into next year"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6af0753084776\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6af0753084776\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/hp-ceo-pc-shipments-will-be-hampered-by-supply-chain-issues-into-next-year\/#Order_backlog_worth_roughly_10_billion_is_blamed_on_parts_shortage_and_spike_in_demand_though_other_PC_makers_are_still_growing_sales_while_HP_shipments_are_shrinking\" >Order backlog worth roughly $10 billion is blamed on parts shortage and spike in demand, though other PC makers are still growing sales while HP shipments are shrinking<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/hp-ceo-pc-shipments-will-be-hampered-by-supply-chain-issues-into-next-year\/#Jon_Swartz\" >Jon Swartz<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#: HP CEO: PC shipments will be hampered by supply-chain issues into next year<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Order_backlog_worth_roughly_10_billion_is_blamed_on_parts_shortage_and_spike_in_demand_though_other_PC_makers_are_still_growing_sales_while_HP_shipments_are_shrinking\"><\/span>\n  Order backlog worth roughly $10 billion is blamed on parts shortage and spike in demand, though other PC makers are still growing sales while HP shipments are shrinking<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\" role=\"region\" aria-label=\"article body\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000449641\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000449641\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Bottlenecked supply chains and chip shortages are bedeviling HP Inc. more than any other personal-computer maker, and the chief executive expects more of the same through early next year.<\/p>\n<p> \u201cWe continue to see very strong demand, and expect to enter next year with a significant backlog,\u201d HP<br \/>\n        HPQ,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203461582\/composite\" class=\"positive\">+0.80%<\/bg-quote><br \/>\n       CEO Enrique Lores told MarketWatch in a Zoom briefing Wednesday before launching a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/hpsam.events.hp.com\/e\/hp-securities-analyst-meeting\/home\" class=\"icon none\">meeting with investors and analysts<\/a> that is expected to include financial guidance for next year. <\/p>\n<div class=\"paywall\">\n       Lores, who is scheduled to share with investors strides the computing pioneer is making in gaming, peripherals, and digital services in HP\u2019s first investor day since 2019,<strong> <\/strong>said the PC maker is taking aggressive steps to meet surging demand as offices reopen. However, customers and partners should expect ongoing constraints due to the nettlesome issue of unavailability of integrated circuits, which are used in the IT industry across most categories, including the server and storage businesses.<\/p>\n<p><strong>For more: The tiny, $1 chip that is behind record price increases for computers<\/strong><\/p>\n<p>Lores said HP executives are \u201ctaking three key actions\u201d to address the issue. The company has started signing agreements with components suppliers to manage access to components directly; designing its products so that more devices use the same components; and initiated a new enterprise resource planning system to optimize its ordering for components and ease an order backlog equal to a quarter\u2019s worth of PC sales, or about $10 billion.<\/p>\n<p>Though world-wide PC shipments grew from 1% (according to Gartner) to 4% (according to IDC) in the third quarter, HP suffered mid-single-digit declines in both reports. HP also lost its No. 1 status to Lenovo Group Ltd.<br \/>\n        992,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205368244\/delayed\" class=\"positive\">+0.12%<\/bg-quote><span>,<\/span><br \/>\n       according to both third-party analyses, thanks to a decline of 6% while Lenovo shipments grew 2% to 3%. Dell Technologies Inc.<br \/>\n        DELL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203822527\/composite\" class=\"positive\">+0.85%<\/bg-quote><br \/>\n       and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>le Inc.<br \/>\n        AAPL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202934861\/composite\" class=\"positive\">+0.15%<\/bg-quote><br \/>\n       also posted significant percentage gains as HP declined.<\/p>\n<p>Lores credited the slowdown to two trends: Surging demand for desktop PCs at a time when more people are working and learning remotely, and component shortages that are expected to persist into the first half of 2022. Adding to the chaos, many businesses are attempting to equip employees with two devices \u2014 one for the home and one for the office.<\/p>\n<p>The trick for PC makers is bridging the delta between demand and their ability to fulfill backlogs, which often \u201ccomes down to small nuances that could lead to vastly different outcomes,\u201d Daniel Newman, principal analyst at Futurum, told MarketWatch.<\/p>\n<p>During HP\u2019s most recent earnings announcement, Lores addressed the company\u2019s plan to more closely manage its original design manufacturers, or ODMs. HP also must contend with competitors like Lenovo and Dell, which benefit from higher volumes, which can create even more competition for limited supply.\u00a0\u00a0<\/p>\n<p>\u201cI don\u2019t see the secular trends like remote work and learning changing, nor do I see the supply chain fix being short-term \u2014 especially with the long tail to build additional manufacturing capacity and the workforce shortages likely to continue,\u201d Newman said.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Many of HP\u2019s ills start with what analyst Patrick Moorhead describes as \u201cthe size and breadth of HP\u2019s supply chain,\u201d which is smaller than those of Apple, Dell and Lenovo.<\/p>\n<p>HP\u2019s de-emphasis of an outsourcing model, in which ODMs managed relationships with components suppliers in addition to managing production, could be the long-term solution, analysts say.<\/p>\n<p>\u201cWhat I\u2019ve picked up is that they have a much more hands-off approach when it comes to ODMs,\u201d Moorhead, principal analyst at Moor Insights &amp; Strategy, told MarketWatch. \u201cODMs would manage supply of those pesky USB controllers and chips used for power management.\u201d<\/p>\n<p>HP\u2019s stock has struggled as the backlog has increased. Shares have declined 12.7% in the past six months, as the S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+0.40%<\/bg-quote><br \/>\n       has increased 9.3%.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jon Swartz\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/author\/jon-swartz\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/jswartz\",\"text\":\"@jswartz\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:jswartz@marketwatch.com\",\"text\":\"jswartz@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\" aria-label=\"links to  author page\"><span class=\"ez-toc-section\" id=\"Jon_Swartz\"><\/span>Jon Swartz<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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